Supply Chain Research

The European Commission will likely allow the container shipping lines to maintain their cooperative alliances for another five years under a so-called block-exemption from antitrust rules. Profitability in the sector remains weak, with gross profits – container rates less bunker fuel – having fallen by 17.6% year over year in the three months to Oct. 31 on Asia-to-Europe lanes. That’s left then at a level half that seen in the same period of 2017. There’s already been a considerable consolidation of market power among the three alliances in the past five years. Ocean Alliance, including...